Exam 9: Sales and Cash Receipts

Monica's Closet received payment in full within the discount period for goods sold on a $1,000 sales invoice, terms 2/10, n/30. Which entry records this payment? (Round your calculations to the nearest whole dollar.)

Sara's Jewelry sold 40 necklaces for $35 each to a credit customer. The invoice included a 7% sales tax and payment terms of 2/10, n/30. In addition, 5 necklaces were returned prior to payment. The entry to record the original sale would include: (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)

When using a subsidiary ledger, the Accounts Receivable account in the general ledger is called the:

Sold Merchandise for Cash subject to a sales tax accepting cash. This will be recorded with:

Dora's Blankets and Bedding had a sale of $600 to a charge customer, terms 2/15, n/30. Dora should record this transaction as follows: (Round intermediary calculations to the nearest cent and final answers to the whole dollar.)

Terms of 3/10, n/30 means that a customer is allowed a 3% discount if he or she pays before the 10th day of the month following the sale.

The principal ledger containing all the balance sheet and income statement accounts is the:

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, and in column 3 the financial statement on which the account balance is reported. -

If a credit memorandum is issued, what account will be increased on the seller's books?

The Milk Co. had the following transactions involving the sale of merchandise. You are to prepare the necessary general journal entries. All sales are subject to a 6% sales tax. Terms of sale were n/30. April 13 Sold merchandise priced at $600 to James Ellsworth on account. April 14 Sold merchandise priced at $325 to a cash customer. April 15 Sold merchandise priced at $175 to Dana Carter on account. April 16 Sold merchandise priced at $700 to a cash customer. April 20 The customer of April 14 returned $50 worth of merchandise for a cash refund. April 25 Received full payment from Dana Carter. April 30 Paid the amount of sales tax to the state. -Prepare the necessary general journal entry for April 25. __________________________________________ __________ __________ __________________________________________ __________ __________ __________________________________________ __________ __________

Bob sold goods for $500 to a charge customer. The customer returned for credit $35 worth of goods. Terms of the sale were 2/10, n/30. If the customer pays the amount owed within the discount period, what is the amount the customer should pay? (Round your calculations to the nearest whole dollar.)

Which of the following statements about subsidiary ledgers is most accurate?

Sales Tax Payable represents an asset on the books of the seller.

Secret Trails received payment in full within the credit period for horse boarding for $1,300 plus 4% sales tax. Terms of the sale were 3/10, n/30. Which entry is required to record this? (Round intermediary calculations to the nearest cent and final answers to the whole dollar.)

The Milk Co. had the following transactions involving the sale of merchandise. You are to prepare the necessary general journal entries. All sales are subject to a 6% sales tax. Terms of sale were n/30. April 13 Sold merchandise priced at $600 to James Ellsworth on account. April 14 Sold merchandise priced at $325 to a cash customer. April 15 Sold merchandise priced at $175 to Dana Carter on account. April 16 Sold merchandise priced at $700 to a cash customer. April 20 The customer of April 14 returned $50 worth of merchandise for a cash refund. April 25 Received full payment from Dana Carter. April 30 Paid the amount of sales tax to the state. -Prepare the necessary general journal entry for April 13. __________________________________________ __________ __________ __________________________________________ __________ __________ __________________________________________ __________ __________

Determine the amount of cash collected at the time of making a sale of $1,000 worth of merchandise subject to a 3% sales tax. $ ________

Sales is a revenue account.

The Milk Co. had the following transactions involving the sale of merchandise. You are to prepare the necessary general journal entries. All sales are subject to a 6% sales tax. Terms of sale were n/30. April 13 Sold merchandise priced at $600 to James Ellsworth on account. April 14 Sold merchandise priced at $325 to a cash customer. April 15 Sold merchandise priced at $175 to Dana Carter on account. April 16 Sold merchandise priced at $700 to a cash customer. April 20 The customer of April 14 returned $50 worth of merchandise for a cash refund. April 25 Received full payment from Dana Carter. April 30 Paid the amount of sales tax to the state. -Prepare the necessary general journal entry for April 16. __________________________________________ __________ __________ __________________________________________ __________ __________ __________________________________________ __________ __________

Merchants who buy goods from wholesalers for resale to customers are:

Jane's Jewelry sold 50 necklaces for $30 each to a credit customer. The invoice included a 7% sales tax and payment terms of 3/10, n/30. In addition, 7 necklaces were returned prior to payment. The entry to record the payment after the discount period would include: (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)